4 Mar 2014
Emirates Integrated Telecommunications Company, more commonly known as Du, has announced three separate financing deals amounting to USD1.17 billion, which it says will lower the company’s funding costs, saving approximately USD9 million over the term of the loan. The deals are a combination of refinancing existing debt facilities on more favorable terms coupled with an additional USD250 million of new facilities to finance future capital expenditure. ‘We have taken the opportunity of the historical low interest rate environment to refinance some of our existing debt and have been able to negotiate very favourable terms strengthening our balance sheet further,’ commented Du’s CEO Osman Sultan, adding: ‘In addition, as we continue to roll out our data offerings, we have secured additional financing for our capital expenditure programme, again at very competitive rates. The structure of this financing will save us USD9 million in costs, increasing shareholder value and providing scope for future growth.’
Abu Dhabi Commercial Bank, National Bank of Abu Dhabi and Samba Financial Group have provided Du with a USD720 million five-year facility, while Standard Chartered Bank has provided a USD300 million facility, which includes the refinancing of the existing USD100 million facility held with them plus an additional USD200 million of new facilities. Finally, DBS Singapore has provided a USD150 million facility, which includes refinancing the existing USD100 million facility plus an additional USD50 million of new facilities.